Acwa Power announces $2.5bn worth of power projects in Uzbekistan
Uzbekistan, Acwa Power, and Air Products enter strategic framework agreement to enable research programmes in the fields of renewable energy and hydrogen
ACWA Power has announced three major milestones related to the development of power projects in Uzbekistan, which include the Sirdarya CCGT plant; Bukhara, Navoi Wind Projects; and an agreement about supporting renewable energy and hydrogen programs.
According to ACWA Power, the milestones include the ground-breaking ceremony of the 1500MW Sirdarya CCGT plant, followed by the signing of two power purchase agreements and investment agreements for two wind power plants located in Bukhara and Navoi.
The Sirdarya CCGT plant will provide cleaner, more efficient and cost-competitive gas power that can be utilised across industries in Uzbekistan and is expected to meet 15% of power demand in Uzbekistan and comprise of 8% of installed power capacity when complete.
Meanwhile, the two wind power plants, have a total investment value of $1.3 billion, and are expected to offset 1.6 million tonnes of carbon emissions per year. Powered by approximately 200 wind turbines, the projects will contribute one third of Uzbekistan’s 3GW wind energy targets, supplying 2.7 million households and supports the government’s aims to have 30% of its power capacity from renewable sources by 2030.
Additionally, The Uzbekistan Ministry of Energy, ACWA Power and Air Products have entered into a strategic framework agreement to develop research programs and projects in the field of hydrogen and renewable energy. This agreement will support Uzbekistan’s ongoing efforts to reduce greenhouse gas emissions as part of global commitment to the Paris Agreement under the UN Framework Convention on Climate Change, it added.
According to a statement from the company, it will be delivering the three projects utilising its technical knowledge, expertise, and experience, to contribute directly to meeting Uzbekistan’s growing yearly electricity demand, which is expected to reach 110 billion kWh by 2030.
ACWA Power stated that its contribution is aligned with Uzbekistan’s national mandate, which is to increase energy efficiency, introduce energy-saving technologies, and develop and implement renewable energy sources, under its recent energy sector reforms.
HE Eng Khalid Al-Falih, Minister of Investment for Saudi Arabia, said: “These visionary projects mark the start of a new chapter in the investment relationship between Saudi Arabia and Uzbekistan. As the Minister of Investment for Saudi Arabia, it is particularly pleasing to see a homegrown Saudi company such as ACWA Power supporting Uzbekistan to deliver such a vital component of its infrastructure investment program, which is central to the country’s economic transformation.”
Commenting on the achievement, Alisher Sultanov, Minister of Energy of Uzbekistan, said: “Most importantly, today’s milestones show that we are delivering on our promises. Enhancing Uzbekistan’s clean energy capacity involves many developmental and investment targets to be hit, over a period of time.”
“By executing our plans efficiently, we will only attract more investment to Uzbekistan, and improve our nation’s energy status. The Ministry extends its deep thanks to ACWA Power and the wider Saudi delegation for making this triumph happen. We look forward to a long and fruitful working relationship.”
The Saudi-based company also stated that it is committed to training and upskilling 1000 local employees in Uzbekistan during the project’s construction and operation phases, generating long-term, socio-economic value through knowledge sharing and job creation.
Additionally, Mohammad Abunayyan, chairman of ACWA Power, said: “As a proud Saudi company, we are privileged to play a vital role in supporting Uzbekistan’s decarbonisation efforts and energy transformation, stemming from the international cooperation between Saudi Arabia and Uzbekistan.”
“Through the addition of new renewable energy capacity, exploration of innovative technologies and the advancement of cleaner, more efficient and cost-competitive gas power, ACWA Power is expanding its presence in Uzbekistan, a high growth market, leveraging our global expertise and technical know-how to create long-term and sustainable value for the country’s local communities,” he concluded.
